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Thread: GW prices.

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  1. #1
    Chaplain
    Join Date
    May 2011
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    Default GW prices.

    Just wanted to put this one to rest.

    I have hated GW price increments, and the rise of toy soldiers and hobby extras has risen faster than inflation.

    However.

    A family relation of mine did quite well on London Transport (an essential service prone to price hikes) and had at one point to come up with a very very complex algorithm to do with price increases. Essentially he had to work out how much revenue was lost when prices were put in versus how much profit was made and where was 'too much'.

    Similarly GW are arguably the leading manufacturer of this war games hobby. In the last decade or so we have seen severe recession in the west and GW has thrown some if its customer service and more family/friendly manners in favour for a more professional and more ruthless business model, which is not surprising seeing that they are a business.

    Also, GW stores (in the UK at least) have been asked to destroy overstock of certain products (most notably vast amounts of black library books) rather than reduce to clear. This is a common business model amongst premium products- no reductions, the prices are correct and we would rather destroy stock than reduce it, because we can afford to and selling a few items at a high price which are cheap to produce is easier on the company overheads (shipping, staffing, manufacturing etc) than selling lots of products at a cheap price which are cheap to produce.

    I.e. the budget supermarket struggles to make profit everyday, whereas the car showroom makes alot fewer sales and a much bigger profit per person.

    GW is like the Harrods of mini wargaming. It costs alot, and that's part of the appeal. (In fact in Harrods GW products cost more than the rrp).

    Whilst I am angry at GW for pricing issues, I think they can justify them in business terms. They are, after all the market leaders. (Im not saying therers not other amazing mini wargaming companies that might be turning more of a % profit, but GW are the giants here).

    Update and edit-

    Summary of this massive beast of a thread:
    Essentially someone complains how GW can justify their prices. Someone else explains that GW justify it (or maybe don't have to justify it) because people buy it. Very occasionally we talk about GW overheads and marketing, staffing distribution and stock markets and business stuff. Sometimes people ask why other things cheap to manufacture (like computer games and DVD's) cost so much when the raw materials of dvds (simply picked from a tree or however they are made) cost so little. Then we talk about production and overheads again. Sometimes we talk about elitism, sometimes we say that the price is right because people buy it. We repeat the same arguments alot. Sometimes someone says something stupid, and sometimes that offends people and we end up in a different cycle of ethical arguments. Mostly we are all upset at GW prices and divided between the 'its not fair' camp and the 'its not essential, if you cant buy it, dont' camp. This summary uses vast generalisations.


    Before Posting:
    Please read the summary above in Red, if your argument has been covered, even if it is not to your satisfaction, don't worry about it. Someone else can wave that flag for you, just go and enjoy the painting and modelling galleries, content in the knowledge that someone else it getting upset and worked up over your point for you. I don't see many people having a fun or constructive conversation in this thread, and I somewhat regret making it in the first place.
    Last edited by Thornblood; 03-15-2012 at 11:31 AM. Reason: Included a summary of thread and posting guidelines hoping to kill the threads a bit.

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